Ferrovial S.A. appears **Marginally Suitable** for hybrid bond issuance.

Key reasons:

- **Infrastructure-like business profile:** Ferrovial is clearly infrastructure-oriented, with very large investments in infrastructure projects of about **€13.7bn** at year-end 2022. Its activities are aligned with transportation infrastructure concessions and related assets, which generally have better cash-flow visibility than ordinary cyclical industrial businesses.

- **Good market access and balance sheet scale:** The group has a large asset base of **€26.3bn**, equity of **€6.35bn**, and substantial liquidity with **€5.13bn cash and cash equivalents**. This supports access to institutional debt markets and gives credibility as a potential hybrid issuer.

- **Existing equity-like instruments:** The balance sheet includes **€508m of “Other Equity Securities”**, and the equity statement references **perpetual subordinated bonds**, indicating prior use or continued presence of hybrid-like capital. However, the supplied data says Ferrovial did **not issue hybrid bonds in 2021 or 2022**, which is a meaningful negative signal for current suitability.

- **Leverage and funding rationale exists, but not compelling enough for “Strongly Suitable”:** Ferrovial has sizeable borrowings, including **€10.8bn noncurrent borrowings** and **€0.9bn current borrowings**, much of it related to infrastructure projects. Hybrid issuance could provide rating capital treatment and support funding for infrastructure capex or refinancing. However, cash holdings are very high, and operating cash flow was positive at **€1.0bn**, so the need is not urgent.

- **Profitability is positive but not very strong:** 2022 net profit was **€302m**, with operating profit of **€423m**, down sharply versus 2021 reported profit, which benefited from large fair value/disposal effects. Finance costs remain material at **€320m**, although cash interest coverage appears manageable. The profile is not distressed, but financial metrics are not clearly deteriorating enough to make hybrids necessary to preserve ratings.

- **Sector supports hybrid appetite, but mixed business risks remain:** Transportation infrastructure concessions can be suitable for hybrids due to long-lived assets and predictable cash flows. Still, Ferrovial also has construction and project development exposure, and infrastructure project debt is substantial. The group is not a pure regulated utility with very stable regulated cash flows.

- **Market conditions in 2022 were less favorable:** Euro swap rates rose sharply in 2022, with 5Y swaps averaging **1.726%** versus negative levels in 2020-2021. Subordinated spreads also widened, making hybrid issuance more expensive and potentially less attractive unless needed for rating support.

Overall, Ferrovial has the scale, infrastructure characteristics, market access, and potential rating-capital rationale to be a plausible hybrid issuer. However, the absence of recent issuance, large cash balance, lack of available rating deterioration metrics, and no clearly urgent refinancing or rating-preservation need prevent a “Strongly Suitable” assessment.

<answer>Marginally Suitable</answer>